In the recent research analysis of CBRE Inc., the worldwide leader in real estate services, Atlanta is the ninth most preferred global destination for Middle Eastern investors worldwide. Atlanta is the second largest destination of Middle Eastern investors in the United States following New York.
The research was based on the outbound flow of Middle Eastern real estate investments in the first six months of this year. The report also shows that there is a nearly 20 percent increase over the previous high water mark for investment, a record set in 2007.
According to Atlanta Business Chronicles, the growth of inbound Middle Eastern Investment in Atlanta is not at all really surprising considering the fact that the rapid growth of internal real estate investment in locations such as Dubai and Qatar has calmed down.
As the market softens and cash are sitting quietly in the Middle East, money begun to move through investment vehicles like sovereign funds or through smaller investment entities.
While American investors find it repugnant to invest in deals at cap rates that are low when compared to historical valuations, Middle Eastern investors are inclined to put their money in stable and predictable American real estate, including Atlanta assets, that offers positive yield rather than letting their money be idle and earning very meager interest.
The Atlanta real estate market is the go-to for Middle Eastern investors due to the fact that unlike any other American real estate market, Atlanta has insistence on title insurance, predictable form of government (including scheduled elections) and well-respected judicial system, according to the report of Atlanta Business Chronicles.
It is still difficult to say if the Atlanta real estate market will still remain in the top 10 cities for Middle Eastern investments, but according to Abe Schear, a partner at Arnall Golden Gregory LLP, "Atlanta's identity continues to rise internationally and, given a greater push to more clearly 'brand' the city, we can expect more investment, Middle Eastern and otherwise."
